5 Best Healthcare Stocks To Buy Now According To Motley Fool’s 1623 Capital

2. Zoetis Inc. (NYSE:ZTS)

1623 Capital’s Stake Value: $4.97 million

Percentage of 1623 Capital’s 13F portfolio: 2.49%

Number of Hedge Fund Holders: 67

Zoetis Inc. (NYSE:ZTS) is the global leader in medicines for animals and livestock. It was formerly a subsidiary of Pfizer, and is headquartered in New Jersey.

On July 11, Piper Sandler analyst David Westenberg initiated coverage of Zoetis Inc. (NYSE:ZTS) with an ‘Overweight’ rating and a $205 price target. The analyst thinks the company still has more than 500 basis points of operating profit margin expansion available over the next 10 years, despite its already high operating margins. Westenberg pointed out that investors rarely find opportunities to buy “consistent growth stocks”, such as Zoetis, at these multiples. He also advised investors to target end markets in companion animal over food animal as pet owners are willing to pay for innovative treatments.

Investors were seen loading up on Zoetis Inc. (NYSE:ZTS) stock. At the end of March, 67 hedge funds disclosed ownership of positions in the company, in contrast to 61 hedge funds a quarter earlier. The firm’s largest Q1 shareholder was Arrowstreet Capital, with a $627.3 million stake which saw a 172% increase over the previous quarter.